The Trades Union Congress called on Tony Blair today to bite the "political bullet" and force companies to contribute to staff pension schemes.

Brendan Barber, the TUC's general secretary elect, told Guardian Unlimited that the government needs to act now to reverse "overwhelmingly negative" trends in pension provision.

"Fewer people are covered by occupational pension schemes ... schemes are being closed to new entrants to the work forces and the schemes that people have access to are getting worse," he warned.

"I don't think we're going to turn that round unless we say that employers have got to accept some obligations in this area."

"We think that that's the political bullet that has to be bitten."

The TUC is also calling for the state pension to be increased in line with wages, rather than in line with price rises as is currently the case, and for the government to introduce more protection for workers in a final salary scheme if the firm running the scheme becomes insolvent.

The Confederation of British Industry (CBI) was quick to reject the TUC's proposal, warning that compelling employers to contribute to pensions would cost them £29bn a year and could lead to there being fewer final salary schemes.

Compulsion "would make firms reluctant to employ people and threaten the viability of some smaller companies" claimed the CBI deputy director-general, John Cridland.

"We cannot afford to add more weight to a cost burden that is pushing the pensions system towards breaking point. Doing so will only add to the pressure on employers to close final salary schemes.

"What we need is a simpler pensions system with tax incentives that are large enough to make a difference."

Mr Barber criticised the government for letting business boss it around. "The government is too deferential to business opinion, too prepared to listen to the CBI and others than they ought to be," he said.

And he seemed unconvinced that the government would be prepared to face up to business over pensions. Asked if meetings with ministers had made him optimistic, he replied: "I wouldn't want to be as bold as that."

"I think they realise the scale of the [pensions] problem but they're apprehensive about the political difficulties of making a change of this magnitude. The prime minister in his conference speech came up with the line 'we're at our best when we're at our boldest'. This is an area that needs boldness."

Mr Barber said he would like to see the prime minister display the same energy and conviction he displays oversees at home. "I would like to see a real recognition, communicated with passion, that there are deep inequalities still in Britain," he said.

"I would like to see the government talk with real conviction about remedying those wrongs - and at the moment, unfortunately, you don't get that sense of passion and determination."

Mr Barber also offered qualified support to Tony Woodley, the T&G's general secretary election favourite, who has called for a union summit to discuss "how to get Labour back representing working class people".

"I very actively want to move the relationship between the unions and the government forward in positive ways," Mr Barber said. "So it sounds to me like what Tony is saying is reflecting the same kind of concern."